
Private Sector Job Growth Slows Sharply in May, Raising Economic Concerns
The U.S. private sector added just 37,000 jobs in May, according to the latest report from payroll processor ADP—marking the weakest monthly hiring total in over two years. The figure fell well short of forecasts, which had projected more than 100,000 new positions for the month. The slowdown was especially noticeable in the goods-producing industries, including manufacturing and mining, which saw a net job loss. Meanwhile, the services sector posted modest gains, with hiring concentrated in areas like leisure, hospitality, finance, and tech-related services. May’s figures also follow a downward revision to April’s job growth, which was reduced to 60,000 from initial estimates. The disappointing report is raising new questions about the strength of the labor market and whether economic momentum is beginning to fade. In response to the weak data, calls for interest rate cuts have grown louder, particularly from political figures urging the Federal Reserve to act. Former President Donald Trump publicly criticized Fed Chair Jerome Powell, pressing for immediate rate reductions to stimulate growth. Currency markets reacted swiftly, with the U.S. dollar losing ground against both the yen and the euro. Investors are now closely watching Friday’s official employment report from the Labor Department for further signs of where the job market—and the economy—may be headed next.